Darling Ingredients Valuation

Is DAR * undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DAR * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DAR * (MX$676.08) is trading below our estimate of fair value (MX$2278.31)

Significantly Below Fair Value: DAR * is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DAR *?

Key metric: As DAR * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DAR *. This is calculated by dividing DAR *'s market cap by their current earnings.
What is DAR *'s PE Ratio?
PE Ratio	24.6x
Earnings	US$261.49m
Market Cap	US$6.44b

DAR * key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.8x
Enterprise Value/EBITDA	12.6x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

How does DAR *'s PE Ratio compare to its peers?

The above table shows the PE ratio for DAR * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	14.5x
GRUMA B Gruma. de	12.1x	7.0%	Mex$122.7b
BIMBO A Grupo Bimbo. de	20.4x	20.7%	Mex$257.5b
BACHOCO B Industrias Bachoco. de	14x	n/a	Mex$50.9b
BAFAR B Grupo Bafar. de	11.4x	n/a	Mex$36.3b
DAR * Darling Ingredients	24.6x	29.9%	Mex$6.4b

Price-To-Earnings vs Peers: DAR * is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the peer average (14.5x).

Price to Earnings Ratio vs Industry

How does DAR *'s PE Ratio compare vs other companies in the South American Food Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: DAR * is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the South American Food industry average (9.8x).

Price to Earnings Ratio vs Fair Ratio

What is DAR *'s PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DAR * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate DAR *'s Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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